>> live from pier 3 in san francisco, welcome to the late edition of "bloomberg west," where we cover the global technology and media companies that are reshaping our world. i'm cory johnson in for emily chang. our focus is on innovation, technology, and the future of business. let's get to the rundown. we have just learned a new candidate to replace steve ballmer, not exactly a household name. johnny-come-lately, that is the

largest public pension and apple shareholder is describing carl icahn. he is called a rater trying to discourse cash. i'm ron burgundy and i will read anything in the teleprompter. it seems the anchorman has been everywhere, lately. blitz the viral marketing , a new business of buzz. breaking news and a new name emerging in the microsoft ceo search, the board considering ollenkopf.eo steve mellon coug we don't know yet, but one candidate who may be fading is forbes ceo mullaly. about his concerns lack of technology experience.

they want a new ceo, ideally, for the end of the year. tom giles, good to see you on the east coast. >> it is like bloomberg east here. >> this is a big deal. they are busting the phones to find out what they heard, tell us about it. >> it turns out we found the name of the person, he is the coo of qualcomm. a well regarded company and has done well in terms of the stock price and growth. they are a leader in wireless technology, specifically the chips that a lot of phones you and i use. microsoft has had an area of weakness, and that is where it can be brought.

>> it is a really different focus for the company. someone who can fix the company, he has done it once or arguably twice. outside is looking at mobile. areas microsoft could focus on. >> this is where microsoft needs strength. whichs a scenario in mullally is taking a short-term role at the company. one scenario being considered. you can imagine him playing some kind of a role. people that we have talked to has said one area where he lacks theseer technology -- other candidates like tony bates have a great deal of expertise. he certainly shows no sign of lacking energy.

>> it seems like he is on the ball. >> absolutely. he is well regarded and has a good reputation. you right off into the sunset after your stint at ford where you had a very good run? they brought that company back from a great deal of difficulty as was the case of gm. >> he is also quite wealthy, worth over $400 million in just his shares alone. now we take a look inside foxconn and some of the other asian manufacturers of some of the world's most popular gadgets. apple supplier foxconn is allowing employees to work excessive overtime in order to meet production goals.

apple, a fair labor association members says that foxconn has addressed 99% of the recommendations, adding that apple has led the industry in addressing excessive overtime, reducing the average work week to 53 hours. it is well below industry norms. there are internationally recognized standards. it was a great concern that one of those employees is only 15 years old.

the one thing that jumped out at me was not the discovery that it was cold comfort to the families, that the deaths were not working conditions, but one of the workers was only 15 years old. >> with tight timetables, things like this are going to happen. as long as apple puts pressure on its contractors. >> i am really kind of leaning on apple are the ones out there saying that they are the problem , they are trying to change it. i am really torn about this.

>> first of all, condolences to the families. it is terrible news to find out that a son has passed away. the child was working at a factory. anywhere in the world, you can have kids run away and it can happen. i am curious as to when the last factory in china belongs to either foxconn -- walked around the factory in 2011. >> are they different? cleaning up working conditions, making them better for the employees there?

>> gordon? has beenk that there some progress, especially since the worker suicides at foxconn in 2010. obviously, these problems persist. this is going to continue for quite some time. the number of hours are 53. know the way this system works, a lot of unreported overtime. they don't tell apple the truth. people are going to die. >> we have seen similar reports about samsung. we find out that samsung is moving 40% of their production

to vietnam, if they are going after even cheaper labor, who knows? maybe worse conditions? >> [indiscernible] foxconn reported a number of suicides. the factory i saw was still very impressive. >> in what way were they impressive? >> they were huge. the number of employees was 400,000. that is roughly the population of oakland. the number of murders in oakland was 104. based on statistics that it is safer to work at the plant then to be nearby in the bay area. statistic, one million factory workers in china. over one million. elsewhere that versus

, and it is way better. this is not the 1980s before people had awareness. >> i don't know if it is fundamentally fair to compare the poor people in a difficult community to someone going to work to make expensive computer devices and face the same risks. >> china is still developing. it is a third world country. [talking over each other] apple, i will have to agree with gordon. it is something that they should think about. workers, butctory

also the terms for the manufacturers themselves. they are much better people than people portray them to be. >> thank you very much. we will be right back on "bloomberg west." ♪

>> carl icahn wants apple to take its giant pile of cash and give it to shareholders. what do the rest of shareholders think? pension of 2.5 million apple shares, they say he is uncomfortable with the news. they spoke and broke the story with bloomberg. this is one of the most .nfluential pension funds and a shareholder that isn't afraid to speak out when it is not happy with what it sees her mother investors.

and a somewhat similar tone this time around. asked what he thought of this carl icahn plan to buy back stock, her response was a johnny-come-lately. the stake in apple goes back to the ipo and we are uncomfortable with a raider coming into a company with a proposal t. be decided this will by long-term holders of apple stock and not raiders. she also said they were ready to stand up shoulder to shoulder, as was the case with david einhorn. apple did not immediately respond to a request for comment. >> apple has a ton of cash that they are not putting to use. a lot of shareholders think they

should use it. what are they saying about giving it back to shareholders? thatat and simpson says is we like what they are doing. returning money to shareholders. carl icahn is late to the party. remember that apple has already committed to a large plan to return money to shareholders. to your point, here is a company that every quarter is generating lots of cash. your is what -- here is what one >> he owns barely .5% of the company, but it is nearly twice as much as calpers. >> .3% is what they're saying.

>> between the two of them, they might have one percent but they speak with a loud voice. car commercials to espn, ron burgundy has been all over the media lately. but will the blitz translate to big bucks in the theater? that and more, coming up on "bloomberg west." ♪

>> i'm cory johnson. this is "bloomberg west."

one of the kickoffs to the hollywood awards season, the golden globe nominations came out. 12 years a slave, american hustle tied for the most nominations. nebraska, captain phillips, and gravity scored multiple nominations. house of cards scored four golden globe nominations, kevin spacey nominated for his portrayal of conniving politician frank underwood. from l.a. andback was that the nominations this morning. what is it like? duty, and this continues a conversation on awards and house of cards that started with the emmys. joins ustive producer now on what has been a pretty busy day for him. we talk about what these nominations mean for programs.

that you find it, what does this mean? >> we had no idea whether we will be eligible for any awards. and the golden globes, it was closer to the eligible and the icing to be nominated. when the press invite you to the table and says we take it worthwhile. >> what is it about the story and the characters that has gotten so much attention from audiences? >> frank underwood is able to toss all the rules out the window and he doesn't have any allegiances. it gives him the liberty to do whatever he wants.

>> i am curious about the marketing story of house of cards as you get ready for the second season. february 14, this big golden globes event the month before. it is pretty nice timing. thingse the kinds of that netflix can take it vantage of given the fact that house of cards is something we will be talking about for the next few weeks. of peoplere plenty that haven't even watched episode one yet. because netflix gives the viewer the choices to how they want to experience the show, there are people that hopefully, because of the attention we got today, will watch season one now and will be caught up and ready. i don't think there is anything oute romantic than take-

chinese and watching season two this valentine's day. >> we can think of a couple but i will give you that. people want to know how far this show can go. us content, netflix told three seasons for sure. beyond that, how far can you go? cagey, not trying to be but we are really focusing one season at a time. the very question you are asking is one that we hope viewers are asking. >> what about content creators? what are they gravitating towards these days? every time there is another nomination or award for her show on a new platform, i imagine there are writers and show maybe i shouldy, be thinking about netflix or another platform. i think you have seen great

artists gravitating towards television because that is where the stories are. that you have content providers like netflix that are willing to take chances, artist will gravitate toward these online ones. we are certainly beneficiaries of that. so much about binge viewing. just one hour, they watch it all. it like a 12 hour movie. affect yourt decision making on the storyline? each episode. ultimately, it hinges on the story. work bothbe able to

ways. either a binge experience or something you watch month-to- month. necessitating that you watch it in a binge fashion, we focus on telling the best story possible and leave it to the viewers to figure out what is best for them. >> now we know what your valentine's plans are, not that we thought they would be much different than that. thanks for joining us. that is the executive producer and show runner of house of cards. the race to deliver groceries. everyone from amazon to walmart is in the grocery delivery game. it is next on "bloomberg west." ♪

>> breing news from washington. actually some agreement on the budget. the representatives have just passed that bill. halfing hunter joins us. kathleen hunter joins us. what does it mean? >> just a few minutes ago, the first budget in four years. it is a two-year agreement crafted by the house of representatives and the senate. one more step in the process, the senate will approve it next week. and we will have some sort of bipartisan agreement on spending. >> it didn't seem possible. is this bipartisan stuff a thing of the past?

as part of thep agreement to reopen the government in october when there was a government shutdown. this budgetary framework was set up. both sides kind of had a stake reaching an agreement. it was surprising they were able to, but in other ways, it's not. the scope of the agreement is much smaller than people worst imagined. it doesn't change entitlement programs or taxes. it is progress, but smaller progress than some people initially imagine. >> it looks like a big number. where is the focus? is the house giving money back? are there programs they want to continue?

>> dealing with the tax question at all, we looked at the supercommittee and there was some incentive and motivation to close tax loopholes and this agreement doesn't do anything like that. it doesn't affect defense as it might otherwise. it is a lot of just tinkering around the edges. stamps about food and aid to the poor? is this a time for compassion at christmas? >> the democratic leader in the senate said that they won't be doing an extension of unemployment benefits. those unemployment benefits run out december 28. it is one program for the poor that won't get done before the end of the year. he would have loved to get it

done but it wasn't part of the agreement and there really isn't a realistic prospect of getting that done. >> merry christmas from the house. appreciate that news, but not glad to hear it. but is not about drones, amazon and walmart want to plan to announce grocery delivery services. they expanded to san francisco. it walmart and ebay also have fast delivery options. why the rush to delivery? the ceo of delivery.com, you're back on this side of the country. >> finally, they are paying attention. one of the biggest trends has been mobile. iphone came out in 2005, i think about that.

we are not even 10 years and the mobile -- into mobile at this point. the ability to find things, search, and discover. now there is a need to go further and answer the question of if i can purchase it as well. mistakes do you expect these guys to make? >> they are answering a problem for amazon or walmart, not solving a problem for the local merchants. people are still not going to want to be served by the local business. i found myself at the amazon fulfillment center last monday. two giants have been doing battle for over a decade. tootruck me that it is

simplistic. amazon wants to be walmart. ebay wants to help merchants that are already out there in the world. i wonder where that leaves you. >> we are there to serve the local business. we serve 10,000 merchants, starting in the food category. level of a certain trust with the local consumer and the local merchants that we serve. we have developed a relationship with the consumer to buy things on a regular basis. dry cleaning and laundry from local merchants. wonder where you are on the build out? >> we have seen some growth in new york -- >> what parts? brooklyn, and some outlying areas like public a ho.

brooklyn,in hoboken, and areas like queens. all the main boroughs of new york city. boston, d c, san francisco, los angeles. >> are you finding that you start with food and then expand from their? -- from there? mass wherecritical we start building out a particular borough or neighborhood. merchants hear from other merchants that it is one way to add to their business, introducing online. most of my life, lately, both are preindustrial cities and they feel -- [indiscernible] they are so completely different.

local is local. surely in delivery, there cannot be a city or different than new york or los angeles. is there a cookie-cutter ? proach gekko >> you have a different merchant base serving a different consumer. think when you are a big company, that is something you can't underestimate. then need to understand the business at that level. >> it is great to see you. upper she ate it. unless you have been living under a rock, you notice probably all the advertising for anchorman 2. will it help ron burgundy score big in the box office?

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>> that was justin bieber's believe. it hits this weekend, thank god. it is a follow-up to never say never, jon erlichman has more on the box office appeal of biebs. you're going? >> i could do a whole show on the business of bieber. he was the director of the first movie, a rising star with silicon valley roots. welcome back to the show. you are back with justin bieber. what led to this? tellere was more story to when we finished never say never. we realized it was just a beginning of the story and the

next chapter might be even more interesting. a boy becomes a man and takes over an empire. let's talk about the economics of a project like this. you report on the budget for the first film was $13 million and goes on to generate close to 100 million dollars in global box office. what does that tell us ? >> we did not know it was going to do that kind of business. we wanted to tell a story with a format that was very unique. it wasn't just a concert film or a documentary, it was kind of a musical documentary. he had a unique story that we told through twitter and youtube videos. surprise. was just a a lot of movies afterwards have taken the format and run with it. this was an evolution of that. ismatures in the way that he

in his life. the movie format and themes evolve as well. rex you mentioned something interesting there. forms like twitter, justin bieber has in the neighborhood of 48 million followers. does that mean a film like this market itself ? will find out. justin and his team have done a great job marketing through the years. we get to see justin take control of those things. he is no longer the 13-year-old boy, he is 1 19 years old and talks frequently about what he wants to do in his career. we are tweeting like crazy, doing a lot of fun social media things. i think it will be an interesting test. we did this movie for almost one third of the budget of the first one. that now, with

technology, we were able to do it on our own. he didn't need a studio to get it up and running. we did it all ourselves. view of more intimate him. i got to be there in his van. >> speaking of technology. you grew up in silicon valley and your family has a well-known restaurant. a place where steve jobs would eat and intel executives would eat. talk to us about the tech toys that people would give you because they knew you were interested in filmmaking. did you get to talk with steve jobs when he came into the restaurant ge? >> i don't know that i was born at that time, but a lot of the adobe guys in the 80s and 90s, the engineers in the valley literally raised me and gave me the software. i got after effects and photoshop. they gave me their beta

computers. by the time i went to usc, i had a had started the digital realm. we had not switched over to digital yet, but i had a head start. now that technology and entertainment are converging, it is the best of all worlds. parents, they are big justin bieber kind of bridges that gap as well because he embraces technology, the way it helps us communicate with each other. it all sort of happened naturally. >> thanks for coming back on the show. >> we will see you there on christmas day? >> cory will be there. >> my kids will be opening presents and i will be with the biebs. ron burgundy has been everywhere

lately. pr blitz before the movie comes out. will the marketing campaign payoff? movie that came out nine years ago and earned a respectable but not extraordinary 95 million dollars is about to spawn a sequel that may well be the hit of the holiday season? without a doubt, the dumbest thing i have ever heard. becames wicked funny and a cult classic thanks to dvd, table tv, and netflix. i don't know if it is any good because i haven't seen it yet, but it is already a marketing juggernaut. thehe year and a half since movie was announced, there was a museum exhibit, a book, commercials -- >> pretty good back here. >> tv cameos and they even

renamed a couch. this is ron burgundy reporting for espn -- >> people like will ferrell and director adam mckay are no strangers to digital media. their comedy website makes more than $30 million a year. the other reason is that ron burgundy is a character that comes on once a decade and will ferrell is genetically engineered to play him. >> i love scotch. ch scotch.oth >> we love that he is selling dodge during go and that there is an ice cream flavor after him. i guess it could tank, but it probably won't. you will probably see this pushed to other companies. a strategy doesn't work unless you've got the goods. i don't really know how to put this --

>> i am kind of a big deal. we will be right back with "bloomberg west." ♪

>> welcome back to "bloomberg west." a victoria's secret fashion show ratingsast night, and were improved over last year. offeredfirst time, cbs a second screen experience to sync audio from the tv to your devices. interactivet of cbs . i asked him what kinds of things you were able to do with this app? of viewers on television overall have another device with them. we have been building tons of apps. bowl andhem at super the grammys. you get clips, taking quizzes, getting information, seeing

sketches of clothing, seeing backstage with taylor swift and the models. lots of things that go along for the super fan. >> how much work goes into a gekko >> a lot. -- into a second screen? >> a lot. this centers around the people that want to get more stuff out of the show. >> can you give us traffic on the app? number one was the rated show, up 36% over last year. by the end of this week, we will have stats overall. >> the fashion show is the perfect thing to do a second screen app for because you can actually buy the stuff that they are wearing. what other kinds of shows does this work for? live shows like super bowl,

grammys, victoria's secret. backstage passes, more information. scripted shows, we are doing tons of stuff with the mentalist. you can see things about the evidence, back story about the character you would not get. for hawaii 50, we did a choose ,our own adventure experience and who would be the culprit at the end of the show? the east coast picked a different villain than the west coast and we showed both of the different endings. has been talk of the coming of the second screen and it seems like it has not really arrived yet. and my experience, twitter has been the consistent second screen. you can get conversation about things that are going on. do you think it is not going to be one company or one app? but that every network will have their own thing that you can go to during the show? will he keep people coming back?

>> we are producing a lot of these ourselves from our own site. itm hulu to these apps, started with social. it is now turning to engagement. platform, forcale cbssports, we have 1.2 million followers. >> it is a lot of work to do that for their own app -- are more engaged users. the more minutes spent per session, the super fan engaged with these apps than the casual fans. the casual fans will probably start to getting gauged as well. >> let's talk about the technology that makes this possible. >> it is synced to the timestamp. it will be weird for you when you first see it. content starts appearing to the

.odel who is on stage the clothing, for her, the band that is playing. to the exact minute of the show. >> how much are you driving traffic to the app? you want people to keep watching. complement three to that experience. the super bowl is another good example where you can watch the game on tv, the biggest screen available. but you can see different to commercials. things that access the experience rather than replace it. >> that was emily chang with jim lansdown. the bwest byte, we have a special guest giving the byte. check out what saul goodman has today. >> the bwest byte is five. five seasons.

it's perfect for a television show. i hope saul goodman goes that far. odehat's in store for bob nkirk? show because the fans want more material. he tells us the show "better call saul" will start shooting in may. >> it lives on. >> yeah. tempted to give away the by tomorrow. -- byte tomorrow. don't tell emily. anniversary of the first rehearsal we did for bloomberg west. >> yeah. is aive-year comment reminder of how long breaking bad was on.

bloomberg.com, check it out. ♪

from bloomberg world headquarters in new york, this is "bottom line." the intersection of business and economics of a main street perspective. the house of representatives passage a budget deal as speaker boehner wishes back against opposition. on fcc votes to end the ban cell phone calls in flight. we look at the massive pr blitz for the film "anchorman 2." to our viewers here in united states and those of you who are joining us from around the world, welcome. we have full coverage of the stocks and stories that are making headlines tonight.